Market forces rained on the parade LIFESTYLE COMMUNITIES LIMITED. (ASX:LIC) shareholders today saw analysts cut their forecasts for this year. Revenue and earnings per share (EPS) forecasts have both been revised downward, with analysts seeing gray clouds on the horizon.
Following the downgrade, Lifestyle Communities' eight analysts now expect 2024 sales to be A$237 million, about the same level as the previous 12 months. Statutory earnings per share for the same period are expected to decline 11% to A$0.57. Prior to this update, the analysts had predicted 2024 revenue of AU$268m and earnings per share (EPS) of AU$0.65. Analyst sentiment has declined significantly, with a significant decline in revenue estimates and a significant decline in earnings. The same applies to per share figures.
Check out our latest analysis for Lifestyle Community.
So it's probably no surprise to hear that the analysts have cut their price target by 7.5% to A$16.29.
Of course, another way to analyze these forecasts is to measure them against the industry itself. We would like to highlight that sales have reversed and are expected to decline by 1.8% per year by the end of 2024. This is a marked change from the historic growth of 15% over the past five years. Compare this with our data. This data suggests that other companies in the same industry are expected to see their revenues grow by a combined 8.5% per year. Therefore, although revenue is expected to shrink, there are no bright spots for this cloud. The lifestyle community is expected to lag the broader industry.
conclusion
The biggest problem with the new estimates is that analysts have lowered their earnings per share estimates, suggesting business headwinds are ahead for the lifestyle community. Unfortunately, analysts have also revised down their revenue forecasts, with industry data showing that Lifestyle His Community's revenue is expected to grow more slowly than the overall market. With forecasts for this year slashed and price targets lowered, it's no wonder investors are starting to get wary of the lifestyle community.
That said, there may be good reason for analysts to be negative on Lifestyle Community, given concerns about the quality of its earnings. Learn more and see the other 1 concerns we've identified for free on our platform here.
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Valuation is complex, but we help make it simple.
Check out our comprehensive analysis to see if Lifestyle Community is potentially overvalued or undervalued, including: Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
